| Roth IRAs are individual saving schemes meant for | | | | account you choose to withdraw from. The order to |
| people with taxable income who meet certain eligibility | | | | be followed is: first of all you have to withdraw from |
| criteria. They are different from the traditional IRA, in | | | | the non-taxable annual contributions made to a Roth |
| that the contributions made to them are subject to tax | | | | IRA, followed by Withdrawals from conversion |
| deductions, but the earnings themselves are tax-free. | | | | contributions on a first-in, first-out basis, and finally, the |
| This means that the Withdrawals are not subject to | | | | Withdrawals can be made from the earnings. |
| taxation. Also, you can have more than one Roth IRA | | | | Also, there is a penalty for early Withdrawals. For |
| account, but there is a limit to the amount of | | | | example, if for some reason you draw money before |
| contributions that you can make in them. Your total | | | | reaching fifty-nine and half years of age, you will be |
| contributions in all the accounts cannot exceed $4,000, | | | | subject to a ten percent penalty on the amount of |
| or 100% of your adjusted gross income, whichever is | | | | Withdrawal. There are, however, exceptions to this |
| less. | | | | rule, including if the Withdrawals have to be made |
| There are some rules and regulations involved with the | | | | because the individual has suffered some sort of |
| Withdrawals of the earnings accrued from these | | | | disability. Also, if a person is buying or rebuilding his |
| savings. First and foremost, if you have multiple Roth | | | | home for the first time, he or she is exempted from |
| IRA accounts, you can withdraw money from any of | | | | the penalty. There is no penalty involved if the |
| the accounts. Yet the Withdrawals themselves have | | | | Withdrawal results because of the owner's death. |
| to be made in a certain order, regardless of the | | | | |